(AP Photo/Julia Demaree Nikhinson)
President Donald Trump on Tuesday said he misses “the old days” when good economic news would lead to a big stock market rally.
But he said “The Trump Rule” is now in effect — where the market is flat or even drops following positive data. Why? Because new school Wall Street traders are worried about what the “eggheads” at the Federal Reserve will do to interest rates as a result.
The president explained the “rule” in a Truth Social post:
In the Modern Market, when you have good news, the Market stays even, or goes down, because Wall Street’s “heads” are wired differently than they used to be. In the old days, when there was good news, the Market went up. Nowadays, when there is good news, the Market goes down, because everybody thinks that Interest Rates will be immediately lifted to take care of “potential” Inflation. That means that, essentially, we can never have a Great Market again.
His post was made a few hours after the Commerce Department reported the economy grew at an annualized rate of 4.3% between July and September, a two-year quarterly high. It also easily beat the 3.2% growth rate forecasted by economists polled by The Wall Street Journal.
Soon after, Trump said the good news was due to his tariff plan, and that things “WILL ONLY GET BETTER” in 2026.
The three major indices — the Nasdaq, S&P 500, and Dow Jones — were all up 0.30% at the time Trump shared his “TRUMP RULE” theory on Tuesday morning.
He also said he wants the next Fed Chair who replaces Jerome Powell to lower interest rates if the market is doing well, “not destroy the Market for no reason whatsoever.”
Trump has routinely lambasted Powell, whom he has branded as Jerome “Too Late” Powell for not moving quickly enough, in his view, to cut rates.
He continued his Truth Social post by saying:
I want to have a Market the likes of which we haven’t had in many decades, a Market that goes up on good news, and down on bad news, the way it should be, and the way it was. Inflation will take care of itself and, if it doesn’t, we can always raise Rates at the appropriate time — But the appropriate time is not to kill Rallies, which could lift our Nation by 10, 15, and even 20 GDP points in a year — and maybe even more than that! A Nation can never be Economically GREAT if “eggheads” are allowed to do everything within their power to destroy the upward slope.
The president added he wants the U.S. to be “rewarded for SUCCESS, not brought down by it” and that anybody who disagrees with him “will never be the Fed Chairman!”
